The fall of prices

The holiday season is right around the corner, even though Halloween is close by. But it seems prices will drop around this time so more people can buy a new video game system. First, let's talk about Microsoft. The 360 has confirmed a price drop to $250 How will the Xbox 360 compete with Nintendo’s Wii U for attention this fall? Not with a line up of blockbuster exclusives, and but with a price drop. The Xbox 360 is quietly enjoying its retail dotage. November will mark the system’s seventh year on shelves, making it positively ancient by video game technology standards. It’s getting just two major exclusive release this fall in Forza Horizon, which will appeal primarily to a niche audience, and Halo 4, a game that isn’t attended by the manic hype that surrounded its predecessor in 2007. Microsoft is opening new services associated with the box, like Xbox Music, and laying the groundwork for the brand’s future with Windows 8, but the Xbox 360 is largely staying quiet going into the always-competitive holidays. The Xbox 360 is getting a price drop this holiday though. Microsoft isn’t announcing a line wide price drop for all Xbox 360 packages, but its retail partners are. Best Buy, Kmart, GameStop, Amazon, and Target are all selling brand new Xbox 360 bundles that are $50 cheaper than usual. GameStop, for example, is selling a $250 box that comes with a 250GB Xbox 360, a copy of Forza Motorsport 4, and a download voucher for The Elder Scrolls V: Skyrim, alongside another $250 package with a 4GB Xbox 360 and a Kinect. Other retailers are offering similar packages at the same price. Microsoft isn't one to take it lying down. They are planning on going after the Wii U when it comes out and challenge it to a one on one duel. They also hope to help re-energize the video game industry, which has been lagging all month. Can they do it? Only time will tell. But Microsoft isn't the only company doing a price drop. Nintendo, who is releasing the Wii U next month, is also doing a price drop on its Wii systems. Nintendo has dropped Wii’s price to $129.99. A new bundle will include a black Wii along with both Wii Sports and Wii Sports Resort on a single disc, as well as a matching black Wii Remote Plus and a Nunchuk controller. Nintendo says the new price is “in advance of the busy holiday shopping season” and is expected to be widely available by October 28th. “Nearly six years after it launched, people are still attracted to the pure, inclusive fun of the Wii console,” said Nintendo of America executive vice president of Sales & Marketing Scott Moffitt. “A new suggested retail price and the inclusion of two great games make it an easy choice for families looking for a great value this holiday season.” The new bundle replaces last year’s New Super Mario Bros. Wii bundle and once again includes the “newly reconfigured” Wii Family Edition, which sits horizontally rather than vertically. The system does not offer backwards compatibility for GameCube games or accessories and was first seen at Gamescom in 2011. That's right. If you can't afford the Wii U, you still got the Nintendo Wii to back you up. Cheaper than even a 3DS, the Wii still provides tons of fun for the whole family, and those who like oldskool NES/SNES/N64/Genesis/MasterSystem/TurboGrafx/NeoGeo titles. So what about Sony and its Playstation 3? Well while you will be getting a super slim model, it seems Sony won't be dropping the price anytime soon. No PlayStation 3 model is getting a price cut this holiday season. Not the new ultra slim models. Not the old slim models. Speaking with Engadget, Sony VP of marketing John Koller, said that the lack of a price drop at the suggested retail price level is because retailers are already running promotions that lower the price of the console significantly. “There’s no price drop formally, but the thing that’s been happening in the market over the last year or so is that there’s been so many retail price promotions, and so many different gift card offers, and all those things, being done by all of us (Microsoft, Nintendo, and Sony), that we’ve heard from our consumer, ‘Enough with all these weird price moves. What we really want is content and games and value,’” said Koller. That’s right: Having two models of PlayStation 3 on shelves, in more than 5 distinct hardware and game bundles, priced everywhere between $250 and over $300, is exactly the sort of clear pricing and value that customers so badly want. If you squint real hard, you can see a layer of logic in Sony’s decision to release the brand new PlayStation 3 models at higher prices than what’s already on shelves. The company is reeling from two years of profound financial losses, the mediocre launch of a new handheld gaming system, and the cost of purchasing Ericsson’s half of its mobile phone business and trying to relaunch the line in an Apple-dominated market. Kaz Hirai, former head of SCEA and new Sony CEO, needs the PlayStation division to make some cash. Releasing a new system designed to save on production costs at a lower price won’t earn Sony that paper. Sony. What are you thinking? Not only will the 360 extend its lead, but the Wii U will crush you in the process. There's more on the line than just a new model, but you also got new competition to go against you. So there you have it. Out of the 3 companies, only 2 will get a price drop. Who will win? Stay tuned this Holiday season where the debate will at least be more hectic than what Obama did early this month. Works Cited: Digital Trends IGN Digital Trends link 2